Exam 11: Developing New Products

A computer store advertises to sell a particular laptop model at a discounted price.When a customer visits the store to purchase the discounted model,he is informed that it is out of stock.The salesperson then tries to sell him a different model that is priced higher than the model for which he had come.This action of the salesperson is an example of:

Consumers are more likely to judge a product's quality based on its price when they are less knowledgeable about the product category.

The pattern of buying both premium and low-priced merchandise or patronizing both expensive,status- and price-oriented retailers is called:

Which of the following refers to those products that consumers purchase for status rather than functionality?

A clothing line company promises a large price reduction to its wholesalers if they feature the company's goods in their promotional campaigns.This is an example of a(n):

A dairy farm sells milk to a confectionery company.The dairy offers the company a reduction of 10 percent on the total amount of the invoice if the company settles the amount within a period of 7 days instead of the usual 30 days.This is an example of a(n):

When consumers view the sale price and compare it with the provided external reference price,their perceptions of the value of the deal is likely to decrease.

Explain what motivates firms to enter price wars.

A store that sells childrens' clothes reduces its prices drastically during promotional sales.This is an example of:

The pricing orientation that explicitly invokes the concept of value for the users of the product and in which prices are set to match the users' expectations is called:

Which of the following pricing methods determine the final price to charge without recognizing the role that consumers or competitors' prices play in the marketplace?

Which of the following is reflective of oligopolistic competition?

Books Inc.is an online seller of books.It ships its books to different parts of the world.When it delivers its shipments,it charges customers based on the zone in which they are located.This is an example of:

The method in which a manager must estimate how much more,or less,consumers are willing to pay for a product relative to other comparable products is called the:

Consumers' ability to replace the focal brand with other products is called:

Differentiate between horizontal price fixing and vertical price fixing.

A prominent fast-food chain sets a very low price for its burgers with the intent of driving its competition out of business.This is an example of:

A company advertises that winter pullovers and jackets will be sold at half price if they are ordered before September 30.This is an example of a(n):

Which of the following pricing strategies sets the initial price low for the introduction of a new product or service,with the objective of building sales,market share,and profits quickly?

Two dairy farms supply milk to a local town.Both of them work together to control the price that the townspeople pay for milk.This is an example of: